PA Daily | Seven Chinese Associations Jointly Issue Virtual Currency Risk Warning; US September Core PCE Falls Short of Expectations, Giving the Fed the Green Light for Further Rate Cuts

Today’s Key News Alerts:

1. Seven Chinese regulatory agencies, including the National Internet Finance Association of China, issued a risk warning on illegal activities involving virtual currencies.
2. US September core PCE came in below expectations, giving the Fed a green light for further rate cuts.
3. Coinbase: Crypto market recovery expected to arrive in December.
4. Jupiter: HumidiFi (WET) token public sale to restart at 11:00 pm on December 8.
5. Glassnode: The current crypto market rebound remains fragile due to a lack of unique catalysts.
6. BlackRock’s Bitcoin ETF logs the longest streak of weekly net outflows, totaling $2.7 billion over five weeks.
7. Metaplanet raises $50 million via Bitcoin-backed collateral to acquire more Bitcoin.

Macros

Europol: International operation dismantles crypto scam network accused of laundering over €700 million

Europol announced Thursday that a large-scale international operation successfully dismantled a major cryptocurrency fraud and money laundering network accused of laundering over €700 million. Spanning multiple jurisdictions, the operation unfolded last month and earlier this week, marking the culmination of years of investigation and effectively disrupting criminal activity across Europe and other regions. The criminal network operated numerous fake crypto investment platforms, attracting thousands of victims with high-return promises. Call centers then used social engineering to show victims inflated returns on fake trading platforms and pressured them to make further payments. Once funds were transferred, they were stolen and laundered through multiple blockchains and exchanges. The investigation revealed multiple fraudulent platforms and complex financial structures were involved.

On October 27, 2025, the first phase kicked off as police in Cyprus, Germany, and Spain coordinated raids at the request of French and Belgian authorities, arresting nine suspects and seizing assets worth millions of euros. Between November 25 and 26, the second phase focused on affiliate marketing infrastructure, with enforcement teams in Belgium and other countries acting with Europol support. Investigators will continue to trace the criminal organization’s assets.

Seven Chinese regulatory agencies issue risk alert on illegal activities involving virtual currencies

According to the official website of the China Futures Association, the National Internet Finance Association of China, the China Banking Association, the China Securities Association, the Asset Management Association of China, the Futures Association, the Listed Companies Association, and the Payment & Clearing Association jointly issued a risk warning to prevent illegal activities involving virtual currencies and related activities. Key points: 1. Correctly understand the essential attributes of virtual currencies, real-world asset tokens, and related activities. Virtual currencies are not issued by monetary authorities, are not legal tender, do not have legal status equivalent to legal currency, and cannot be used as currency in China. Stablecoins currently cannot effectively meet requirements for customer identification, anti-money laundering, etc., and pose risks of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers. Real-world asset tokenization through issuing tokens or token-like rights/bonds for financing and trading carries multiple risks, including fake asset risk, business failure risk, and speculation risk. No real-world asset tokenization activity is approved by Chinese financial regulators. Domestic institutions and individuals conducting fiat-to-crypto exchange, token issuance, or financing are suspected of illegal issuance, fundraising, unauthorized securities offering, or illegal futures business. Overseas virtual currency and real-world asset token service providers serving China directly or indirectly also constitute illegal financial activity. Relevant overseas virtual currency service providers’ personnel in China, and domestic institutions and individuals knowingly assisting such activities, will be held legally responsible. 2. Institutions are prohibited from engaging in business related to virtual currencies or real-world asset tokens. 3. The public should be highly alert to all forms of virtual currency and real-world asset token activities.

Related: Seven industry associations issue risk warning: Beware of illegal fundraising and pyramid schemes under the guise of virtual currencies.

US prosecutors recommend 12-year prison sentence for Do Kwon

According to Bloomberg, US prosecutors stated in a Thursday night court filing to a New York federal judge that Terraform Labs Pte. co-founder Do Kwon’s fraud was “massive in scale” and merits severe punishment, recommending a 12-year prison sentence. Prosecutors noted that Do Kwon lied to customers, sparking a chain of crises in the crypto sector, including the collapse of SBF’s FTX exchange. US District Judge Paul Engelmayer will sentence Do Kwon on December 11.

US September core PCE below expectations, gives Fed further green light for rate cuts

According to Jin10, a key inflation indicator released Friday by the US Department of Commerce showed the September inflation rate was lower than expected. The report, delayed due to a government shutdown, gives the Fed a further green light for rate cuts. Core PCE price index, excluding volatile food and energy prices, was up 0.2% month-over-month and 2.8% year-over-year; while the monthly rate met general expectations, the annual rate was 0.1 percentage points lower than expected. Additionally, according to the Bureau of Economic Analysis, total personal consumption expenditures rose 0.3% month-over-month, with the annual inflation rate also at 2.8%—both in line with expectations. The Fed uses the PCE price index as a main policy tool for measuring inflation, generally considering the core metric a better indicator of long-term trends. The report was delayed by several weeks due to the government shutdown.

According to Jin10, a key inflation indicator released Friday by the US Department of Commerce showed the September inflation rate was lower than expected. The report, delayed due to a government shutdown, gives the Fed a further green light for rate cuts. Core PCE price index, excluding volatile food and energy prices, was up 0.2% month-over-month and 2.8% year-over-year; while the monthly rate met general expectations, the annual rate was 0.1 percentage points lower than expected. Additionally, according to the Bureau of Economic Analysis, total personal consumption expenditures rose 0.3% month-over-month, with the annual inflation rate also at 2.8%—both in line with expectations. The Fed uses the PCE price index as a main policy tool for measuring inflation, generally considering the core metric a better indicator of long-term trends. The report was delayed by several weeks due to the government shutdown.

CSRC Chairman Wu Qing: Must deeply study and treat new forms such as crypto assets with caution

According to Shanghai Securities News, Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the 8th General Meeting of the China Securities Association that it is necessary to strengthen risk prevention in key areas. For businesses that require attention, such as margin financing and securities lending, OTC derivatives, private asset management, and for institutions such as subsidiaries with remote headquarters, as well as key risks in credit, liquidity, and compliance, we must “keep our eyes wide open” and take precautions. For new forms such as crypto assets, we must study deeply and treat them with caution. If it’s not well understood or controllable, business will not be carried out; illegal activities must not be done.

According to Shanghai Securities News, Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the 8th General Meeting of the China Securities Association that it is necessary to strengthen risk prevention in key areas. For businesses that require attention, such as margin financing and securities lending, OTC derivatives, private asset management, and for institutions such as subsidiaries with remote headquarters, as well as key risks in credit, liquidity, and compliance, we must “keep our eyes wide open” and take precautions. For new forms such as crypto assets, we must study deeply and treat them with caution. If it’s not well understood or controllable, business will not be carried out; illegal activities must not be done.

Views

Fidelity CEO says she holds Bitcoin and believes it will play an important role in the savings system

Fidelity CEO Abigail Johnson said: “I like Bitcoin. I hold Bitcoin. It will play an important role in the savings system.”

Former Bank of China Vice President Wang Yongli: Promoting RMB stablecoins has no advantage domestically or internationally

Former Bank of China Vice President Wang Yongli wrote in “Why China Firmly Banned Stablecoins?” that China already has a global lead in mobile payments and digital RMB, so pushing RMB stablecoins offers no domestic advantage, little international growth or influence, and China should not follow the US dollar stablecoin path by promoting both onshore and offshore RMB stablecoins. Developing RMB stablecoins as a copy of USD stablecoins is unlikely to challenge the dollar’s position and could make RMB stablecoins a vassal of the USD, impacting national tax, foreign exchange management, and cross-border capital flows, and posing a serious threat to currency sovereignty and financial stability. Given an increasingly complex global environment, China should prioritize national security, closely monitor and strictly guard against crypto asset speculation including stablecoins, and not simply pursue efficiency and cost reduction. Of course, while banning stablecoins and cracking down on virtual currency trading and speculation, China must also accelerate the innovative development and broad application of digital RMB at home and abroad to form a global lead and explore a fair, reasonable, and secure new international monetary system.

SlowMist: User’s $27 million in crypto assets stolen, likely due to computer compromise and private key leak

SlowMist’s Cosine posted on X that user Babur reported a $27 million crypto theft, mainly involving two addresses: Solana address 91xu and Ethereum Safe multisig address 0xD2, with two largest stolen assets totaling over $18 million. Hacker addresses are 71fM (Solana) and 0x4f (Ethereum), with some funds bridged to Ethereum. The incident likely resulted from a compromised computer, where the user double-clicked a malicious file, leaking private keys, including both Safe multisig signature keys stored on the infected computer.

Glassnode: Crypto market rebound remains fragile due to lack of unique catalysts

Glassnode posted on X that crypto price movements have stabilized, but the rebound lacks strong crypto-specific catalysts and remains fragile. In options markets, despite calm Bitcoin trading, open interest is dominated by calls, with the put/call ratio sharply down in the past two weeks, indicating traders expect year-end gains. However, the past 7 days saw a significant slowdown in options trading volume, showing weakening confidence in supporting the rally. Focusing on $95,000 call strike, net call premium for short- and mid-term options has continued to decline, highlighting a lack of upward momentum. Implied volatility across tenors keeps falling, suggesting less demand for protective or leveraged upside strategies, with traders expecting stable prices and, as call open interest dominates during falling implied volatility, a more passive positioning. The 25-delta skew remains positive but in bearish territory, suggesting markets are still pricing in further downside risks—this skew structure typically does not precede breakouts. On the macro front, expectations for a December rate cut are the main support for current prices; if expectations shift or a “hawkish cut” emerges, implied volatility and spot prices may reprice rapidly.

CoinShares: The DAT bubble has largely burst, solution lies in structural reform

James Butterfill, Head of Research at crypto asset manager CoinShares, said in a report that the Digital Asset Treasury (DAT) bubble has mostly burst. By summer 2025, companies trading at 3–10x market cap/net asset value (mNAV) have dropped to about 1x or lower. The model of viewing token treasuries as growth engines has undergone sharp correction. The next move depends on market behavior: either falling prices trigger disorderly selling, or companies hold positions and wait for a rebound. Butterfill favors the latter, citing improving macro conditions and a likely December rate cut. The greater challenge is structural. Some companies built vast treasuries via public markets but lacked sustainable businesses, damaging credibility. Investors are now less tolerant of equity dilution and single-asset concentration without real operating income. There are signs that stronger companies are incorporating Bitcoin into rigorous treasury and FX management strategies, signaling healthier development. The digital asset treasury concept isn’t dead—it’s being redefined. The next generation must be underpinned by fundamentals, credible business models, stricter governance, and realistic expectations, treating digital assets as tools, not everything.

Coinbase: Crypto market recovery expected in December

Coinbase Institutional posted on X that signs of market recovery are becoming more evident. As liquidity improves, the probability of a Fed rate cut jumps to 92% (as of December 4), and macro tailwinds strengthen, crypto is poised for a December recovery. Reasons include:

• Liquidity is returning
• The so-called “AI bubble” has not yet burst (more room for upside)
• At current levels, shorting the USD is attractive

Coinbase previously predicted a weak November and a December rebound, potentially marking the start of renewed crypto market momentum.

Yili Hua: After Ethereum Fusaka upgrade, blob base fee soared 15 million times due to EIP-7918’s new “floor mechanism”

Liquid Capital founder Yili Hua posted on X that after the Ethereum Fusaka upgrade, blob base fee soared by 15 million times, mainly due to EIP-7918’s new blob fee “minimum mechanism”—previously, there was no blob fee floor, so it was stuck at 1 wei (nearly free) for a long time, causing nodes to bear KZG verification costs without reasonable compensation. After the upgrade, blob fee must be ≥ 1/15.258 of the L1 execution base fee, directly pegging it to real network costs. This design lets the price reflect real resource consumption (preventing L2s from using resources for free), allows price volatility to regulate blob traffic and prevent congestion, and PeerDAS increases blob storage capacity. In addition, blob fees are now burned with ETH; estimates suggest 8x more ETH may be burned in the future, possibly contributing 30–50% of total ETH burned in 2026, depending on L2 transaction volume growth.

Project Updates

Bloomberg: HashKey to begin accepting investor subscriptions for Hong Kong IPO next week, aiming to raise at least $200 million

According to Bloomberg, sources say crypto trading operator HashKey Holdings Ltd. will start accepting investor orders for its Hong Kong IPO as early as next week. HashKey aims to raise at least $200 million and plans to list as soon as this month. IPO size and timing may change. HashKey did not immediately respond to a request for comment.

Binance Futures to delist multiple USDT-margined perpetual contracts, including SKATEUSDT and REIUSDT

According to the official announcement, Binance Futures will automatically settle and delist SKATEUSDT, REIUSDT, FISUSDT, and VOXELUSDT USDT-margined perpetual contracts at 17:00 (UTC+8) on December 10, 2025.

PIGGY token suspected rug pull causes price to plunge 90%

PIGGY token is suspected of a rug pull, with nearly $4 million worth of PIGTY newly minted and immediately dumped on the market within 10 minutes. The token price instantly plunged 90%.

CEA Industries responds to YZi Labs: Reaffirms commitment to BNB treasury strategy

BNB treasury company CEA Industries (NASDAQ: BNC) responded to YZi Labs’ statement, saying that since the PIPE financing in July, BNC has never considered another token for its digital asset treasury strategy, nor launched a competing DAT project. As of December 4, 2025, the company holds 515,554 BNB tokens, valued at about $464.6 million. Two days before YZi’s press release, a preliminary consent statement was submitted, proposing to expand and restructure the board. Most board members are independent, complying with NASDAQ rules and possessing the knowledge and experience needed to supervise operations and create shareholder value. The company values shareholder feedback and welcomes constructive suggestions. The board has contacted YZi directly to establish an open dialogue on their concerns and potential solutions, reviewing YZi’s issues. No shareholder action is needed at this time.

Previously, YZi Labs sought to expand BNB treasury company CEA Industries’ board for better strategy and oversight, and warned shareholders of CEA’s “disruptive behavior.”

Coinbase adds ImmuneFi (IMU) and Sentient (SENT) to asset roadmap

According to Coinbase Markets, Coinbase announced that ImmuneFi (IMU) and Sentient (SENT) have been added to its asset listing roadmap. The assets’ trading launch depends on market support and technical infrastructure, with a further announcement to follow when ready.

Grayscale submits S-1 registration statement to SEC, applying to launch SUI ETF

Grayscale has submitted an S-1 registration statement to the US SEC, applying to launch the Grayscale Sui Trust (SUI) ETF.

Jupiter: HumidiFi (WET) token public sale to restart at 11:00 pm on December 8

Jupiter posted on X that the WET public sale phase will restart at 11:00 pm (UTC+8) on December 8. The public sale phase scheduled for 10:00 am (US Eastern Time) on December 4 has been canceled, and all participating addresses will be refunded their USDC commitments. A new WET token will be deployed, and the old one will be invalidated. Users who successfully participated in the Wetlist and Jup Stakers phases retain their allocations and can claim via the DTF page on TGE day.

Previously, it was reported that HumidiFi will restart the public sale next Monday and airdrop new tokens to Wetlist and JUP stakers proportionally. Blockchain analytics platform Bubblemaps posted on X that it had identified the WET token sniper, “Ramarxyz”, who used over 1,000 wallets to buy 70% of the HumidiFi presale and later demanded a refund.

Binance Futures to launch POWERUSDT USDT-margined perpetual contract

According to the official announcement, Binance Futures will launch the POWERUSDT perpetual contract at 17:00 (UTC+8) on December 6, with up to 20x leverage.

Key Data

BlackRock Bitcoin ETF logs the longest streak of weekly net outflows, totaling $2.7 billion over five weeks

According to Bloomberg, BlackRock’s iShares Bitcoin Trust (IBIT) has logged the longest streak of weekly net outflows since its January 2024 debut, signaling that institutional interest in Bitcoin remains weak even as prices stabilize. In the five weeks ending November 28, investors redeemed over $2.7 billion from the ETF. With another $113 million withdrawn on Thursday, the ETF is heading for a sixth straight week of net outflows. Glassnode noted in a recent report that this trend marks a clear reversal of the sustained inflows that previously supported rising prices, reflecting waning enthusiasm for allocating new capital to the asset.

Ethereum spot ETFs saw $75.2 million net outflows yesterday, with none of the nine ETFs posting inflows

According to SoSoValue data, on December 5 (US Eastern Time), Ethereum spot ETFs saw $75.2 million in net outflows.

The largest single-day net outflow came from BlackRock’s ETF ETHA, with $75.2 million withdrawn. ETHA’s historical net inflow is now $13.091 billion.

As of press time, Ethereum spot ETF total net asset value is $18.936 billion, with an ETF net asset ratio (market cap as a percentage of Ethereum’s total market cap) of 5.19%, and a historical cumulative net inflow of $12.879 billion.

Bitcoin spot ETFs saw $54.79 million net inflow yesterday, with only BlackRock’s IBIT posting net outflows

According to SoSoValue data, on December 5 (US Eastern Time), Bitcoin spot ETFs saw $54.79 million in net inflows.

The largest single-day net inflow was for Ark Invest and 21Shares’ ETF ARKB, at $42.79 million; ARKB’s historical net inflow now totals $1.75 billion.

Next was Fidelity (Fidelity) ETF FBTC, with a single-day net inflow of $27.29 million and a historical net inflow of $12.091 billion.

The largest single-day net outflow was BlackRock (Blackrock) ETF IBIT, with $32.49 million withdrawn; IBIT’s historical net inflow is now $62.517 billion.

As of press time, total net asset value of Bitcoin spot ETFs is $117.109 billion, with an ETF net asset ratio (market cap as a percentage of Bitcoin’s total market cap) of 6.57%, and historical cumulative net inflows of $57.617 billion.

Fundraising/Acquisitions

Blockchain-based bank N3XT has raised $72 million across three rounds, with Paradigm among investors

According to Crunchbase, blockchain-based bank N3XT has completed three rounds of fundraising totaling $72 million, with the latest round closing in October. Investors include Paradigm, HACK VC, and Winklevoss Capital.

Previously, it was reported that former Signature Bank executives founded blockchain bank N3XT, led by Signature Bank founder and former chairman Scott Shay, with former Signature Bank Head of Digital Assets and Web3 Strategy Jeffrey Wallis serving as CEO.

SpaceX plans internal share sale at $800 billion valuation, targeting IPO in second half of next year

Sources say SpaceX is negotiating an internal share sale that would value Elon Musk’s rocket and satellite maker at $800 billion. If confirmed, the deal would make SpaceX the world’s most valuable startup, surpassing OpenAI’s $500 billion record set in October. The valuation is up sharply from July’s $212 per share, when the company raised funds at a $400 billion valuation.

Two people familiar with the discussions said SpaceX has told investors and financial institutions it plans an IPO in the second half of next year, as it considers selling shares held by investors.

Institutional Holdings

Metaplanet raises $50 million via Bitcoin-backed collateral to buy more Bitcoin

According to BitcoinTreasuries.NET, Japanese listed company Metaplanet announced it raised $50 million using Bitcoin as collateral to buy more Bitcoin.

Bitmine buys about 22,700 ETH worth nearly $69 million within four hours

According to Lookonchain, Bitmine purchased 22,676 ETH (worth $68.67 million) four hours ago.

National Bank of Canada discloses purchase of about $273 million in Strategy stock

According to BitcoinTreasuries.NET, National Bank of Canada has just disclosed the purchase of 1.47 million shares of Bitcoin financial company Strategy (MSTR), worth about $273 million.